Tuesday, June 26, 2018

Nepse retreats below 1,200-point threshold

Nepal Stock Exchange (Nepse) index shed some 15.29 points or 1.26 per cent to close the share market at 1,194.80 points today.
After hitting a record high of 1,881.45 points on July 27, 2016, the share market index had slumped to a two-year low at 1,168.55 points on March 26 this year. The market has been not able to look up after immediately after the Dr Yubaraj Khatiwada has been appointed finance minister. The investors have not been able to feel comfortable due to Khatiwada's attitude towards the share market.
The sensitive index also dropped 3.11 points or 1.22 per cent to 250.86 points and float index fell 1.12 points or 1.29 per cent to 85.67 points during the day's trading. Likewise, all the sub-indices recorded losses today. Banking subgroup, which has the highest weightage in benchmark index, fell 12.73 points or 1.24 per cent to 1,010.28 points, whereas the hotels subgroup dipped by 2.81 per cent or 52.02 points to land at 1,796.81 points.
The market witnessed total transaction of Rs 231 million today.
In terms of stock-wise turnovers, banking stocks remained active on the day led by Nabil Bank Promoter Share. Over Rs 13 million worth of its shares were traded on the day. Nepal Investment Bank was next on the list with a turnover of Rs 10 million. Besides, Kumari Bank, Standard Chartered Bank Nepal and Mega Bank were the other companies on the list of highest turnover of stocks.
The market sentiment has been hit due to left government's attitude towards the market and also the new tax rule – which is currently under review in the finance ministry – on calculation of capital gains tax on rights and bonus share.
Khatiwada, though, has urged investors to be aware of the risks involved in their investment citing investing without assessing the risks could lead to a crisis.